Political Turmoil in France: Prime Minister Resigns After Just Hours

PARIS, France — France’s political landscape shook Monday when Prime Minister Sébastien Lecornu unexpectedly resigned just hours after announcing his new cabinet. This resignation comes amid growing scrutiny and criticism over his government, which faced significant pressure from leftist lawmakers regarding budget plans.

Lecornu, who described himself as “the weakest prime minister of the Fifth Republic,” stated his intention to avoid invoking Article 49.3 of the French constitution, which allows the government to pass legislation without parliamentary approval. His resignation amplifies fears of instability within President Emmanuel Macron‘s administration.

The resignation had immediate effects on the financial markets, with the CAC 40 share index plummeting by 1.8%. Analysts noted that the political crisis is leading investors to offload French assets, particularly affecting luxury brands such as LVMH and Hermes.

Victoria Scholar, head of investment at Interactive Investor, commented on the situation: “Gold and silver are both up by more than 1% each… driven by global uncertainty that is driving investors towards safe-haven assets.” The gold price has surged, hitting $3,943 per ounce.

As uncertainties loom about future elections and possible governmental restructuring, market analysts are concerned about the rising French bond yields and the implications for Eurozone stability. With the political situation unsettled, French financial assets are likely to experience continued volatility.

President Macron named his new cabinet just a day before Lecornu’s resignation, highlighting confusion within the government. Many believe this instability could benefit the far-right National Rally party, increasing the potential for future political upheaval.

While the markets digest the changes, political observers note that the lack of a clear path forward raises questions about the legitimacy of Macron’s government. Chris Beauchamp, chief market analyst at IG, stated, “To lose one prime minister is unfortunate, but four looks like a major crisis.”